VYX - Earnings call transcript Q1 2024

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Operator

Greetings, and welcome to the NCR Voyix First Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Alan Katz, Vice President of Investor Relations. Thank you, sir.

You may begin.

Alan Katz

you our thank earnings quarter and call. conference morning for first joining XXXX Good issued release our the we morning, This earnings March XXXX. quarter reporting XX, ended for financials we release A with the Investor the been found Relations website, are and at will our the reference of SEC. can the available copy on during earnings filed presentation which of section www.ncrvoyix.com call this have that be and

Chief and Financial today are This David our Brian With Webb-Walsh, recorded on Officer; our Investor Relations being is the call is website. section me webcast of available Officer. the Chief call Wilkinson, the our Executive and on

could Before we differ materially actual those forward-looking subject contain statements results expressed begin, will from are such by or please which be to risks remarks and forward-looking cause today These uncertainties statements. forward-looking that to statements. and implied advised factors, other

information For reliance and filed other reports on please earnings not our place factors, SEC. you release additional refer our these caution statements. to the these with to We on undue

Forward-looking call no of undertake as call only them. this this speak of we date to the and update obligation during statements

performance. are In reflective financial measures believe will certain of providing non-GAAP addition, which we our be we today, discussing or ongoing more

this furnished For release call as a discussed see website. an with and accordance of Investor our of to comparable supplemental morning financial GAAP Relations in our on press in the non-GAAP exhibit to Form measures full reconciliation the this measure most materials please filed section X-K the SEC our available our regulations,

now David. turn I the that, call to With to like would over

David Wilkinson

earnings welcome, quarter and everyone, first Alan XXXX Thank call. our you, to

banking software streams. expectations. existing impact and grew continue X% onboard the revenue transformation as services our digital adjusted For higher-margin platforms. and EBITDA the and revenue We delivered executed quarter, within our in our and saw initiatives to on and continued new and line of to commerce we growth with customers we Normalized revenue

our in segments, our with across segment sales activity sales provide customers solid including We on achieved new and expanding I'll updates. signing our customers. detail existing XXX results nearly more

converting continued ongoing and investments approximately strategy, restaurant X% now platform ARR of and and total sites. our coupled services segment The a our drove sales approximately total also sites, We our with of XX% platform in software our total customers of XX,XXX customer of execution to of growth ARR growth our retail platform and X%. have global network increased

will for a program, run agreement, and the we improve across will end moved payments, marketing consumer experience and Further, users with on engage smaller first with U.S. also Prest marketing by guest platform enterprise of loyalty stores their a while digital agreement first ARR e-commerce Let's turn the full announced new both quarter. more than our more X% to sites juice and to increased their in solutions, segment one loyalty we the and the reporting Prest back channels. the our XX%, and our and online. quarter, slide and driving payment respectively. multiyear them to Prest, allowing e-commerce, organization. from and our fresh our solution office, Slide business. platform of our wholesale and in and efficiencies operations including signed a In a Under restaurants locations brands X% In provider simplifies Segment their leading XXX X. point-of-sale, provide customers which growing than integrated with new in XXX we business, physical and suite the grew their

their increasingly including who experience conglomerate years. utilized than In customers for guest customer an across our addition and in increase approximately This more customer digital footprint a restaurant customers, XXX XX signing their restaurant satisfaction. to U.S., with the restaurants customer platform to NCR quarter of improve we renewed existing been has new and has expanded Voyix our this commerce leading

real-time the their deliver and an outside efforts, data serve experience agreement our restaurant patrons and for in In seeing expectations. customer brand of We're we cataloging guest enable this began to of In and this to XXXX, menu their year, providing this ordering further existing mid-market customers. promise matches that growth we better customer. QX expanded new logos signing traction with our of exceeding expanding

XX-plus our this We rate payments new quarter. execute demonstrated customers, led our against strategy to continue for percent mid-market by attach

growth growing improving team, our process pricing the simplifying this which and sales are and for accelerate sales onboarding We packaging, will business. our and

Retail our to on move Slide on X. segment Let's

X signed and sites. new we than more to leading quarter, This enterprise small than XX and more customers, additional mid-market customers XXX

nearly as We onboard XX% platform. customers by continue our and also commerce platform on-premise convert to to newly our we signed sites customers increased

signed grocery ARR largest to the attaching and One to the with U.K. a of one X% powerful software Segment with store and is grew grew platform. XX% of we locations. chains ARR over multiyear expansion attributed the of Sainsbury's, impact the this X,XXX in renewal example

solution point-of-sale For with more than and our Sainsbury's provided X decades, related we services. technology software self-checkout with have on-premise

Last as commerce of operates month, to than to lanes footprint, We're Sainsbury's track store part connect XX,XXX their implemented expanded our platform. more agreement. on our which data and their entire analytics module

the and cloud-based part will point-of-sale and software As in-lane upgrade of our solutions. self-checkout their we XXXX, to contract in

investment guest platform drive our of for an cloud-native life on to strategic in-store We're less over business drive partnership revenue continue our to in excited adjusted commitment years recurring our and incremental solution their EBITDA contract. the experience. payback deliver the X will enhanced eliminate than and to a and complexity Sainsbury's

While take example investment they a sales margin a create its implemented, investment payback a to converting accretive and and on time often are platform to for the cycles return platform. customer longer revenue when can fast once enterprise deploy, Sainsbury's customers. a on and of have is conversions how realize to our customers with great

next-generation, experience, guest interest is part our Our their retail providing accelerating on focused which of for customers are solution. increasingly as choice self-checkout

global doubled the self-checkout leading number I on implement a our rollout that even the last sites next-gen highlighted quarter, customer this finished For initial e-commerce to with the We solution contract of our call. our self-checkout with when and installations. we contracted remaining for weren't retailer example, this expanded

our Force from government experience Navy XX self-checkout, to on and were a able direct self-checkout technology to as with Exchange, based existing their and customer. another now and their a to additional an Exchange, of stores We throughout over expand of NCR potential We customer be expedite this the services result the expanded deploying U.S. expansion as also customer, Air Army recommendation Voyix the relationship will an time. across point-of-sale the stores with

on X. Let's to Slide move

demonstrated Banking and performance financial operational quarter. this Digital strong segment Our

segment increased Our registered to active X%. X% million XX.X of users XX.X more ARR users grew grew than X% than number and more million, while to the

senior have and We've our consolidated to XXXX, our align organization, built structure out the simplifying into growth organizational digital our team business we taken single and In business now with of our have market. go-to strategy. and X streamlining operating our steps model operations banking leadership our a lines

our product reduced drive is and already are early solutions. innovation products efficiencies. Although cost realignment sacrificing in research development to our capacity, sales we to in and Further, without have realizing its capital platform, or speed greater investment market our have stages, been and activity we able

products quarter, we relationships the and solutions. our XXX selling with In first additional expanded customers over existing

One customer in base unlock expansion in retail additional largest a the their that Today, business. in banks an XX XX utilize the growth digital-first customer serve industry. increase bank was to largest U.S. retail use to cost Tier portion of and ARPU of continue notable and banking will platform. our We digital ARR our the base now further platform their with efficiencies for X the

In further our addition new financial X client roster. existing our signed to also relationships, expanding this industry-leading institutions quarter, expanding we

Apple strong with the digital-first assets our bank a potential platform, update to Bank in an contract signed offerings. largest York, our would end Apple we billion comprehensive now New the over differentiated on and user our to like management. leveraging technology. savings provide experience the $XX XX value efficiencies, of I platform selected example, us our drive proposition given under of branches Bank, For with and state-chartered

As share, customer better Voyix a Loyalty, solution and to direct marketing with revenue integrated marketing our personalization combining will and in strengthen relationships incremental our we products customer into and we beginning single allows invest to drives and proprietary data, management customer our NCR by market aim additional and that continue application. improve services, capture offer

is example recent of we solution. seeing Prest this for a the are increasing demand

customers. As experience. launched the continue Retailers guest several checkout XX flexibility provide with in accelerate both operational of mentioned on retailers To the that of our over retail improving focus initial end, market. labor their broader a challenging a have including Based and we this self-checkout, our of to earlier, moving and next driving to improve to expect demand, more for more delivers solution set and advanced this adopting to on agility our next-generation the we a growth experience retail new technology segment existing guest experience efficiencies face forward. over additional customers implementation next-gen seamless Sainsbury's, quarters, customers, self-checkout to

parties our healthy of or applications customers. cloud-based retail agreements These banking and with leverage We have also third-party digital the transaction-based for that with recurring our several either and architecture generate enhance platform third offering margins. restaurant, our revenue

tables are to pay-at-table manage capabilities, enabling restaurants, expand simultaneously. servers Sunday our leveraging more For technology from to we

capabilities have expanded our offerings press with As to enterprise to integrated you've seen new customers. recent in and we partnership our bring release, Olo, our

to In technology and banking MX tools retail, have Technologies Within help are we offering shrink personal partnered our AI-enabled by partnering for Evercheck business, we to self-checkout. Everseen, financial mitigate digital with support. wellness with offer

position. our to customers capitalizing execute strategy existing like our signing would reiterate ability on market in on our to new converting platform, customers unrivaled our growth of I my confidence and to

to We further are services enhance our products and prudently services, for extending our growth. investing across software revenue and business our and runway drive

XXXX. over to take will will results who it the for through and outlook Brian, With detail our that, financial of in I QX turn remainder more the you

Brian Webb-Walsh

and you, Thank David morning. good

As especially in a when looking at and reminder, spin-off Atleos NCR comparisons. the results, XXXX some reported created of complexity level QX year-over-year our of

spin items. impact divesture-related that today We are of providing focus results commentary these on and normalized My exclude results. normalized will the certain

Please turn to Slide XX.

first total normalized of quarter approximately for revenue million. timing $XXX decline of declining the refresh hardware Normalized X% services a software revenue result to revenue a the X% as driven increased was $XXX million, expected, quarter in First as cycles. and customer by

EBITDA by hardware was QX adjusted driven and dissynergies $XXX $XX which declined spin-related million, million normalized of lower revenue. X%,

margin EBITDA our EBITDA dissynergies, adjusted than would year. have higher XX% year-over-year. QX by these grown adjusted was XX.X%, slightly Excluding prior the

average QX EPS adjusted count XXX.X share weighted diluted was was and Our our million. $X.XX

Across we was which revenue, saw Adjusted offset Please go by details results. to our turn in to of and growth through the services our declines software Slide hardware. restaurant XX our segments, segment Within X%. all segments. software grew EBITDA X a hardware, segment, in consistent was of across with expectations. resulting performance by decline revenue improved offset and This services our X%, in

and solid revenue XXX services margin increases. offset as price basis In realized by and number revenue grew X%. Restaurants expanding increased driven revenue services with XX% our and performance of and of profit a adjusted grew platform EBITDA payment and we Software resulting increasing transformation points, hardware and sites decline in retail, had total by initiatives. mix primarily software X%, by the

revenue success reflects services and customers customers. transitioning those software with the The and to continued platform our expanding growth

revenue increased banking, leverage operating and Within conversion and in cross-sell enterprise revenue David onboard we grew customers. and XX% time. to points, momentum Adjusted the our driven initiatives. a over base cycle EBITDA margin X% will enterprise by as segment highlighted, result QX signed be as shifting by growth can platform our basis grew XX mix EBITDA for our accelerate earnings and this platform demonstrate transformation X% the As previously customers, longer continued initiatives. digital transformation Adjusted expanded of while and revenue to

I separation impact corporate will our now other on line. address the of and

revenue This we process in the associated portion are spin-related revenue the dissynergies separation. amounted dissynergies with related in million of and $XX commercial beyond We lower XXXX. corporate QX. this has margin first First, with a these of extend down. agreements A winding businesses, the also expenses the quarter, anticipate net noncore included the reflect have other $X will and associated both In which million to our Atleos, we with of contribution. to which that

now we commercial to year, total to $XX full related million. the agreements revenue approximately For expect

Please of cash. $X.X quarter to the and net million XX. debt We leverage, of X.Xx turn ended with $XXX billion Slide

our under facility we $XXX credit XX, million March of revolving drawn As had million. $XXX

associated with this related flow items $XX million of our and end year-end the cash normal transformation use of our As and a few expected, million separation seasonality. other on initiatives our at expected adversely leverage higher We the was of $X quarter, based X.Xx. given impacted will that net spend approximately There including anticipate leverage expenses. to QX, be were cash restructuring at

transformation and other impact quarters. severance, These positive base. items anticipate costs cost to We ramp our professional related the to include coming up fees exit our over initiatives' seeing rightsizing margin

Finally, our outline I'd like XXXX to guidance.

reminder, delayed the not associated As reflect Atleos our guidance revenue a with does countries. adjusted EBITDA or transfer

and communicated Given XXXX year, call. on performance the are quarter we reaffirming the our for current first the that guidance ranges QX we our visibility

the for additional turn to David call back now I'll some remarks.

David Wilkinson

Brian. Thanks,

company. has business go-forward to Before worked the NCR I'd of of strategy that of with Voyix, Jim been his the we Jim NCR into we at to role during the current Chairman Q&A, stepped Executive to the move I've announced this closely the Chairman. and for like Atleos Voyix note he that has of integral development following morning, now Kelly, the the spin tenure

about a particularly and of experience expertise from with new excited payments. leadership am more Jim He efficiency strategic working objectives, wealth public companies, closely in his I and brings operational role. around

the have underway, the role that Given will initiatives Board to expanded important having and many the in team. invaluable management we him be this

over operator begin the the session. to to the With Please will turn I open that, question-and-answer line. it

Operator

comes Instructions] Matt with Our first from Summerville Davidson. D.A. question [Operator

Matt Summerville

talking Maybe Obviously, the an it's your in top what bottom more piece around by environment get you that totally seeing hardware an can guys contributor, today? line. the just if to maybe but start still that's little less a revenue. bit you're on so important I line broadly important

self-checkout, you're an some end comments there. maybe then I would in in larger the up include to Specifically what 'XX with 'XX, seeing follow-up. that view thought respect maybe projects of on had you late some hitting have And a updated

David Wilkinson

David. it's Matt,

hardware coming the kind we projects is project-driven pushed COVID, of seeing, were -- business And back the those half and in is saw. are pretty the of as the So bubble for that we largely described, back lumpy. we post year, that us that

resurface seeing, half in of So year. projects of those some again, we're the the back

In terms self-checkout for holistic us self-checkout, solution. of really is a

large a for that checkout. that following the appliance that form mobile consumers looking we're of And know different grocery call So ways in terms unassisted kiosk checkout, love a device, consumer we'll or it, is, whether of takes chain big that a a of the of box self-checkout trends the within you a the large lot to and or standard sits store.

to our software out see, prices of the and show to self-checkout in in business a hardware prepared our little that our lane, average selling thins is But going because making a So continue described will we we're up lot see in demand. too. the big makes services demand. It up a decline as some remarks, a traction, continued bit. piece that again, as in the we next-gen And business

Brian Webb-Walsh

based first moderate on And expect add the that I decline would the to versus just hardware half we the half. projects, the second in

Matt Summerville

the about cadence QX. the the about more back broadly the delivered of you go-forward we So as of kind think then, maybe lines, QX and thinking how million of half revenue and we to along as speaking, should year EBITDA relative a those follow-up Brian, $XXX be in EBITDA

Brian Webb-Walsh

Yes.

the adjusted with in on of what half, EBITDA our last see moderate the are expected because we we'll as through consistent the decline transformation through said revenue improve call, and year as year. our So go cost the rate to initiatives and go ramping we hardware because second is we sequentially

Operator

Our next & Needham question comes from Mayank with Co. Tandon

Mayank Tandon

could just down And diving progress by software in well. the vertical on talk about or the could as in total Maybe trends, break maybe line expect side trend and you as what terms year-end? Brian just should there it we through ARR ARR, you into David, of you both

David Wilkinson

we're would out -- will and in the is Yes, monetizing us total ARR, That the industries the of of that a that say that new the, X trend of serve. base sequential in overall, seeing to businesses, -- for we're in continue strategy well. software as the in our as pleased the services we ARR we're the honestly. and terms Brian we're of similar described, seeing with look see, growth a all of what growth trend I over We'll quarters, ARR in customers, the confidence install as we includes gives be growth largest adding customer is us base

Brian Webb-Walsh

first I take that. at And a metrics of published add the a on data which just to we data, would for website, our lot everybody KPI a just time X encourage point, file the financial look has and

Mayank Tandon

Got it.

And doing at to is up The well. quarters. pure there other piece, turn I'll question. separate recent get have the look plays you I'm from We as out banking do they creeped in in now this valuations Well, and well. really obviously, meaningfully just digital Okay. if for a a sure the lot actually the pretty investors we market,

any be given So overall? in monetize digital opportunity given for And obvious very valuations restaurants, that the and just at the it least your to seem on maybe potentially plans retail updates between shareholders doesn't obviously, over to asset, the that investors to time? higher and thoughts that rewarding be, synergies banking there? the Any way, could market

David Wilkinson

Yes. saw has of really well. is as that through The the We're banking done. proud digital business, team results, what you performing

As focused on seeing that strong and we're growth singular business. in operationally, that consolidated a I into described execution continued team we've

NCR of shareholder always of exposing what So right opportunities that whole now, continue Voyix. and we're being explore That to we I value that the agree value of business new maximize and is is value. doing, that's the said, that the underappreciated intent the to

Operator

Research. comes with Mehta Northcoast Kartik Our from next question

Kartik Mehta

in some conversations next terms footprint based their your of what -- you're Dave, on the get expect retailers just are stores California like to of And that self-checkout. lot progress even and of up on years? wanting backdrop, to seeing could product proposed away in a in I'm of if away for self-checkout. There reduce follow legislation the with do they'd you'd you There's wondering, the that to that terms demand of with self-checkout. couple over in how headlines

David Wilkinson

there Yes. said we with we and was in U.K., deploy We that also of articles. self-checkout -- our as -- the There came their in continuing them. to they're love Simon, X the and same that customers see relationship was described Sainsbury's, CEO out

a back, point I'll is consumer So trend. This really to trend. Kartik, the consumer-driven

create with retailers both requirements large You as really order are these driving or with -- their consumers and transact checkout, retailers. to I, otherwise shoppers and ways for restaurants and to the unassisted

So to going staffing stores strong that a times that peak for new we're to value-added battling or differentiate for experience I looks shifting labor for think tasks battle and to labor offer to services. what as capabilities and a all customers they continue they're see like. in trend and the They're new both different

So continue. the will believing that we're trend

hardware described from will it I our as well, to services As on will to software show full service the accepting different take earlier, and in cash kiosk cases. the some in you've that in up business as forms mobile seen

continue how take will retailers to restaurants experiences around lot and conversations create a form that experience, have and So the to of technology-driven solutions. better again, guest both in unassisted we and of

Kartik Mehta

the in wondering, XXXX, apply. And to pipeline, kind you're a what's about still going is second decline past, of the half outlook of comments the a a know And And moderated. you'd those XXXX the and just because what years. about kind the you based little would I anomaly how what's little in in bit more bit then an in if to be seeing happen And on on I'm a about half. in business. as talked your previous you've and of hardware of follow-up talked first happened expect lot

David Wilkinson

the of described full pipeline. strong the the healthy terms the with We're you and on numbers supports pleased answer cadence of and is in of the question. pipeline Brian a guidance. gave to other our I it see earlier we've The the pipeline. We growing mean, expected year what reaffirmation

Kartik Mehta

Yes. Okay.

just the decline, moderate so a your past XXXX about I so being And more in Dave, was would still valid? commentary be wondering,

David Wilkinson

still right the seeing gives the point, Everything said, I Brian half that, back Yes, yes. this projects of year recovering now believe believe indications, at the we're that are us so. would I as

Operator

comes Woodring Erik Our Morgan with next from question Stanley.

Erik Woodring

signed. haven't customers you always Historically, quantified

that put And context, wondering so context you the normal, this customers just might give I bit above Was quarterly Just was run to context nearly of put more more in and morning normal? restaurants. you across some be? helpful a just of the on could would driving Why again, us historical signed What's if be Can would some in us. rates? you for disclosed retail a that? maybe of metrics XXX color how of numbers to those how kind this super that compare little below kind

David Wilkinson

Yes, expected the I quarter, of with number and performance. customers consistent is added we with past what say, we this consistent would

side adding an more we've as have, and We been customers. describing, investing the focus increased put new on on sales

strong, we it's Digital to to in that market So the you expanded relationships the with We a expose XXX new that of seasonality business. customers, rest and banking, metric the to. normal is X want banking continue added expansion digital customers.

expansion of there addition in in and the new performance focus the with So was strength still customers, we'll continue but to expectations. we're base adding and the seeing line to

Erik Woodring

I of That's getting the And about helpful. or goal to by at least Okay. year. just net your the was leverage talked X.Xx you end -- about know then

look just us, long roughly to net I take longer-term to the this think of that second, context the Xx talking have. target? that, that? year linearity color me. side this conversion. cash any get just year, How you was run understand the is helpful, you're And the to we And help long-term about? in Does we the rate longer-term you'd get be both year? in think us terms Just beyond there? be it should putting How to that that on remind for And pieces How free that's would very this goal is for through creep know then of cash thinking that XX%. moving and of XX% for higher? does to leverage. maybe Can all I year will flow to the it do trends this the about that about

David Wilkinson

Yes.

cash there, and we in cash what flow generation. drives that's So flow improving we plan of do expected. X.X normal focus continue under with payroll cadence get by under The get -- from as for we'll leverage seasonality. this in free to and my year, that continue we are used -- cash as year. to usage. And said then QX need QX, We we're then still or maintaining still that happened to and things our and X about in year range of remarks, free I -- that, the And to free play of cash that typically starting we cash out prepared There That's year. the leverage with on expect certain flow so to the balance turns and leverage. our to do to conversion percentages see for the expect end we'd of

into get way. we feel flow and think today. before that from still we As improve that We've years, free do can where the we cash future we are described we

Operator

from Markets. comes RBC with Capital Matthew question next Roswell Our

Matthew Roswell

existing could you're you they're on in of time? a to stepping if of platform. bit or conversions coming the also, coming of new wondering what on over, are was how terms platform I up seeing for and ahead whether expand sort waiting clients the renewals And clients

David Wilkinson

when new new to all So are customers, platform. we all customers describe of of coming adds, customer our on those the

We to in XX,XXX, everybody to of did I thing just ground on. see up platform our one increase sites want that's about base. an So XX%

We're that do refresh in that ahead also base. expected customers seeing we're conversion seeing of So cycles. as

the some capabilities new enabled guest about digital capabilities partnership that's experience, through mentioned or think new there the products of for you are prepared of payment the the partnerships out being all of demand capabilities, section remarks, when platform. and those loyalty, that I the form, in So

and all connection it through capabilities platform. the So starts new platform that enable we with then

not So legacy core base. back building into that it

an -- those require platform capabilities. upgrade deliver to on-prem. don't legacies' products point-of-sale our We connect our to of We new the legacy the can

subscription So that and it they're connecting them need required, finding right for capabilities for we're those needs the based as platform new new and capability. now, doing to we're customer that a delivering are on

Operator

comes Our with Oppenheimer. next question from Zaffino Ian

Isaac Sellhausen

you'd pacing how you've gone the the you last is process This have on are follow-up how way expansions of Sellhausen Ian. expansions point. platform the maybe been customers, long the within restaurant takes customers, the the expected? Maybe sales restaurant touch just specifically there's that with Isaac for could like In a conversations and chains. number generally with a with and expanding on Maybe out business, renewals on called

David Wilkinson

Yes, we pushing I'd are in unlock platform been with connecting we've pleased we're that functionality X existing customers the the some having that sales expand segments, as and been that extend of the the depending the capabilities small out all We'll months on with API to months, conversations enterprise the X into that the to small much really of with to base. will well to have the XX market X enterprise in, as deliver that side, and down X the on larger platform is we midsize, some and cycle. a out to months. mid-market. driving in base, able enterprise sales our about the back different conversations shorter we're mid-market customer Really, to segment which customer say it cycle The both the the to it's call

the scale players mid-market So enterprise our of access long making time, customers. things a the have some we're had to that available for now to

more seeing we're more see you'll So traction. --

and that the lower enterprise with lot in we're announced of seeing us traction. see that lot of -- where a with where of demand the wins Prest space we'll we like end at a call some You'll more mid-market-ish

positive customers with a our discussions and existing base. of from good trends, lot positive So new feedback

Isaac Sellhausen

could in incremental we And quarter. costs that if going maybe just the particular forward? That's focused then helpful. you any transformation see any just Is you Okay. will that a follow-up on initiatives on business? And frame, the if mentioned

Brian Webb-Walsh

Yes.

is flows So it's described million $XX on the side. we're and million major program That a of is this And next the and optimization One underway cost program, transformation and which hardware out well. design initiatives, benefits into $XX hardware million X $XXX year doing we year. really buckets.

remote more business about the is a which different second, set. This our doing skill services piece, within is [indiscernible]. XX% The is and biggest is having this

as separated companies, corporate X estate same the the just expenses. we're need about are other and that Those real And set. expenses we examples. don't Now XX% is then skill X category,

program And is going well. cost so that

the The restructuring savings that and portfolio real IT the take and to -- expect in portfolio. we the transformation estate costs severance, those And costs to that's that that's the quarter, plus free in flow achieve saw the rightsizing spend including I cash And $XX given. that year -- million cost separation the related exit first in if happened you we've total, guidance million about transformation bucket, to quarter. the in this $XX line bucket what of with

Operator

question Neumann next Stephens. Alex from comes with Our

Alexander Neumann

Nabhan. is Chuck on This Alex for

on the of expansion. had restaurant segment, XXX margin Just basis we points

I attributed transformational that that segment expect that going XXs, to costs. to high you in something the we Is forward? for should margin think some mid- that

David Wilkinson

We the would for XX% is. that at year. expect to to be full segment It XX%

So it is something to continue. expect that we'd

Alexander Neumann

of will of then think banking be balance then revenue, well, on what for see how And about versus that after ARPU investment. you of digital maybe just that also And margin as segment? forward? I margin couple going the year was could years Okay. we mix a expansion positive Should similar growth

David Wilkinson

Yes.

be the continue will to X% margins XX% roughly we full improve year-over-year. for So which up on for about digital margin, banking, to expect year,

And we pretty we good it through saw user continue. do in growth expect EBITDA to year, a split than that We'd ARPU faster the the to combination QX. revenue. the like revenue growth be go we both So was as grow and expansion we expect of to expect

Operator

with Matt D.A. comes question next Davidson. Our from Summerville

Matt Summerville

I 'XX, $XX million et couple that $XX encounter of follow-ups. Brian, year, cetera, costs early, quick it's what how much million that then And accrete to a Just to and cash thinking related to therefore, flow like, company's of cash I number to roughly the about free a you realize guess tail severance, expect as off follow-up. profile? that does look I have this you're can

Brian Webb-Walsh

a have down cost that the time. goes forward free over do Separation of Yes, does is help then And go cost to which to completely. [indiscernible] but we'll rightsizing separation-related, that be as the would that, definitely around base, to we come flow. that's away and cash that expect part number always a come we incremental down component would that's

and percent holding In reduction as -- addition, to as forward revenue of or debt, improving steady interest as a flow. as free cash a or of the actually we we help with improve percent cash would holding would CapEx a be and help steady reduce revenue free our CapEx our go it flow, leverage

that those can forward. that are we give the So drivers free as cash us go flow confidence we improve

Matt Summerville

then -- maybe a talk how spend that reportable maybe you in have talking wondering just in was retail year looking businesses. on and again, I adds like on what to rates compares and maybe X years X if been banking segments, focus digital even the ago, can And or with attrition restaurants about your all please. X it. customer touch some time Got

David Wilkinson

I that Yes. the all would segments. tell you through we'll run --

net like new on there. focused we we're customers we're adding So feel and making traction

On the enterprise-heavy focused. -- are we pretty

of end customer our that And see So our retention happening strong base, we the the enterprise the enterprise -- We I some on we When customers, smaller the see the strong that taking on normal retention customers, we specifically could small business. at of -- get restaurant new share. small so see normal customers side. business, side, of in as XX% business net the then of out churn see retail base. as of to of restaurant up that adding customers again, our that, go to side

expanding revenue then we're some on to and at of actually, banking, strong price we renewal the across like digital very a the singular net as On and market portfolio the then expanding, We're retention operationalize capabilities look seeing market with move ARPU with segment. we're that percent by rates. base into we you and the strengthening XX-plus cross-selling continue as customers, XXX if from our contracts our up-selling of rate existing we renewing see to and did

overall, that of So seen trends continuing. kind normal feeling we're about it we've with really good attrition

Matt Summerville

the that lastly, on net capture I renewal then last that broadly segments? I a each with digital of slight all were you on of impression comment on new speaking you under just just Then are the the seeing X And compression. quarter, Is of in maybe price price, the activity sort amount banking guess maybe side? positive price. was price

David Wilkinson

outside price capturing we price compression segments compression each last X of CPI-related that renewal after around X in that. renewal, improving then So do with go the but typically of we And X over compression has price see increases in digital quarters. businesses, and or get price been banking, X the at we so benefits on all

Operator

no are Wilkinson David There further like questions to to time. at I comments. closing now would over this floor turn the for back

David Wilkinson

in colleagues In to help day their objectives. us our customers their strategic I'd I'd they again support. that Voyix closing, to for like successes also trust now to you. Thank for again our all ongoing our to every thank contributions them their put up our thank the for of investors NCR achieve like to and

committed remain journey our on existing customers. platform them addition adding in customers the we and earlier, to new stated I to As bringing serving

you do focus into our look this I platform where built to in and to believe and and years to in continue have that a we've and within going we're growth mid-market. to execute. platform. foundation turning provided for growth progress Our in growth of management to Thank at connect to them customers are, the QX And plan our better I new of solid this proud show our our team we today up you over forward past value we base outlined and call. the specifically our this the need to updating on results. will in investments We real we're continued on believe while customers, foundation

Operator

This concludes today's teleconference.

disconnect for this may time. your you Thank your participation. lines at You

NCR Voyix (VYX) 9 May 242024 Q1 Earnings call transcript